Explore
![EIB Working Paper 2022/12 - Determinants of the exchange rate, its volatility and currency crash risk in Africa’s low and lower middle-income countries EIB Working Paper 2022/12 - Determinants of the exchange rate, its volatility and currency crash risk in Africa’s low and lower middle-income countries](https://unglueit-files.s3.amazonaws.com/cache/b6/a4/b6a440f3d14c7491d817edca079eafc9.jpg)
EIB Working Paper 2022/12 - Determinants of the exchange rate, its volatility and currency crash risk in Africa’s low and lower middle-income countries
Anjelo Okot and European Investment Bank
2022
0 Ungluers have
Faved this Work
Login to Fave
"The last three decades have witnessed substantial changes in the foreign exchange markets in Africa, with moves towards liberalisation and flexible exchange rate regimes. This has increased the influence of financial market conditions and heightened the risk of exchange rate volatility and large and sudden exchange rate movements. This paper investigates the determinants of nominal exchange rates, their volatility, and crash risk in African lower and lower-middle income countries. It combines macro-panel estimations for 15 such countries with insights from interviews with market participants. It shows the importance of these countries' distinctive export structure, concentrated in a few agricultural and mineral-based commodities, as well as recent financial integration, for exchange rate determination. It finds that terms of trade, export concentration, and export prices have a significant impact on the exchange rate level and volatility. By contrast, financial factors including the interest rate differential, international market conditions, and short-term financial flows, influence the likelihood of sudden and large exchange rate movements."
This book is included in DOAB.
Why read this book? Have your say.
You must be logged in to comment.
Rights Information
Are you the author or publisher of this work? If so, you can claim it as yours by registering as an Unglue.it rights holder.Downloads
This work has been downloaded 32 times via unglue.it ebook links.
- 32 - pdf (CC BY-NC-ND) at OAPEN Library.
Keywords
- Business & Economics
- Economics, finance, business & management
- Finance
- Finance & accounting
- Financial engineering
Links
DOI: 10.2867/79307Editions
![edition cover edition cover](https://unglueit-files.s3.amazonaws.com/cache/b6/a4/b6a440f3d14c7491d817edca079eafc9.jpg)